Free course · Lesson 3 of 14

Uptrends and downtrends

Reading who is in control: buyers or sellers.

Step by step

1. Each high here is higher than the one before (HH), and each low is higher too (HL). That’s an uptrend: buyers are in control.
2. As long as the lows keep getting higher, the uptrend is alive.
3. Then price falls below the last higher low. The pattern of higher lows is broken.
4. Now each high is lower than the last (LH) and each low is lower (LL). That’s a downtrend: sellers are in control.

Remember: Uptrend: higher highs and higher lows. Downtrend: lower highs and lower lows. When the pattern breaks, the trend may be turning.